Usage Based Insurance

MOBi App enables Usage Based Insurance (UBI), also known as Pay-As-You-Drive (PAYD) or Pay-as-How-You-Drive (PHYD). For decades, people have considered the auto insurance premium like a tax that they have to pay pretty much regardless of their actual driving behavior. This is no longer acceptable and people want to be rewarded for being a safe driver.

Insurance carriers are all racing to implement PAYD insurance models to provide competitive differentiation and meet customer demand. These new models use driving behavior data to analyze driving patterns, encourage safe driving practices and reward customers with lower premiums for good driving behavior. In nearly all the existing UBI solutions, the data are transmitted from a Telematics device (dongle) that is connected to On-board diagnostics (OBD) port of the car. Progressive's Snapshot is an example of these devices.

UBI dongles cost a lot of money to insurance companies. Some of these costs are: device itself, data transmission, and maintenance. The device is given to the user for free.

UBI devices do not have any audio or visual interface and thus are unable of delivering any feedback to the driver in real time.